VBA Call Center

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION U.S. General Services Administration GSA Region Greater Puget Sound Service Center JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION LEASE NUMBER: GS-10B-07396 PROJECT NUMBER: 2WA0552 Agency Name: Veterans Administration 1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED. . The General Services Administration currently houses the Veterans Benefits Administration call center in Federal space in Auburn Washington. Currently they are housed in approximately 82,500 usable square feet (usf) (appx 95,000 rentable square feet) of office space at the Auburn Federal Complex, Auburn Washington under an Occupancy Agreement for the Veterans Benefits Administration, (VBA). The VBA currently works 7 days a week, 12 hour days to complete their mission. They are the only location in the country separating service members, defining their benefits, and mission requirements can only be met by being open daily. The building VBA is housed in, a converted 1940's warehouse, was severely damaged by an ice storm in early 2012. Studies were completed in September, 2012 which showed it would be extremely expensive, not cost effective to repair the building, and a snow event would put the building in jeopardy. Four inches of snow would close the building for a minimum of 48 hours. There is no cost effective solution that would allow the VBA to remain in federal space. Federal Center South will not be vacated until early December by the Corp of Engineers. It is currently substandard space, not seismically compliant and the VBA has determined it would not meet the time requirement and delays would put their mission at risk. The only viable solution is to put an emergency lease in place to enable the VBA to move prior to a potential snow event. After several days of market research, the competition is being limited to the two locations that can meet all the requirements, including the limited time frame for move in and the contiguous space requirements. The following are the two locations that can meet all the requirements and are within the competitive range. Centerpoint 20819 72nd Ave South Kent, WA SeaTac Towers, North 17900 International Blvd SeaTac, WA 2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED. The Veterans Administration has a continuing need for call center space for 82,500 usable square feet (usf), approximately 95,000 rentable square feet (rsf) of office and related space. To satisfy the Veterans Administration mission requirements, the facility has the following requirements: This requirement is for 95,000 rsf of space for a 10 year, 5 year firm term to commence on December 1, 2012. The estimated annual cost of this lease is $25.00 per BOMA rentable square feet per year for an annual cost of $2,375,000 and a total contract value of $23,750,000. The delineated area is as follows: Northern Boundary: Starting from the intersection of Alaskan Way and Broad St. in Seattle, WA and traveling in an northeasterly direction along Broad St and Valley St. to the intersection at Valley St. and Interstate 5. Eastern Boundary: Starting from the intersection of Valley St. and Interstate 5 in a southbound direction along Interstate 5 to the intersection of Interstate 5 and Washington State Highway 405. Traveling in an eastbound direction on Washington State Highway 405 to the intersection of Washington State Highway 405 and Washington State Highway 167. Traveling in a southbound direction on Washington State Highway 167 to the intersection of Washington State Highway 167 and Washington State Highway 18. Traveling eastbound on Washington State Highway 18 to the intersection of Washington State Highway 18 and C St SW. Traveling southbound on C St. SW to the intersection of C St. SW and Ellingson Rd. Southern Boundary: Starting from the intersection of Washington State Highway 167 and Ellingson Rd. Traveling in an eastbound direction along Ellingson Rd to the intersection of Ellingson Rd. and C St SW. Western Boundary: Starting from the intersection of Alaskan Way and Broad St. traveling in a southbound direction along the Alaskan Way Viaduct to southbound E. Marginal Way S. along Pacific Highway South southbound to the intersection of Pacific Highway South and Washington State Highway 18. Traveling in an eastern bound direction along Washington State Highway 18 to the intersection of Washington State Highway 18 and Washington State Highway 167. Heading in a southbound direction on Washington State Highway 167 to the intersection of Washington State Highway 167 and Ellingson Rd. Traveling in an eastbound direction along Ellingson Rd to the intersection of Ellingson Rd. and C St SW. 3. IDENTIFICATION OF STATUTORY AUTHORITY. 6.302-2 Unusual and compelling urgency. (a) Authority. (1) Citations: 10 U.S.C. 2304(c)(2) or 41 U.S.C. 253(c)(2). (2) When the agency's need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. (b) Application. This authority applies in those situations where- (1) An unusual and compelling urgency precludes full and open competition; and (2) Delay in award of a contract would result in serious injury, financial or other, to the Government. (c) Limitations. (1) Contracts awarded using this authority shall be supported by the written justifications and approvals described in 6.303 and 6.304. These justifications may be made and approved after contract award when preparation and approval prior to award would unreasonably delay the acquisition. (2) This statutory authority requires that agencies shall request offers from as many potential sources as is practicable under the circumstances. (d) Period of Performance. (1) The total period of performance of a contract awarded using this authority- (i) May not exceed the time necessary- (A) To meet the unusual and compelling requirements of the work to be performed under the contract; and (B) For the agency to enter into another contract for the required goods and services through the use of competitive procedures; and (ii) May not exceed one year unless the head of the agency entering into the contract determines that exceptional circumstances apply. (2) The requirements in paragraph (d)(1) of this section shall apply to any contract in an amount greater than the simplified acquisition threshold. (3) The determination of exceptional circumstances is in addition to the approval of the justification in 6.304. (4) The determination may be made after contract award when making the determination prior to award would unreasonably delay the acquisition 4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED. The engineering study determined the existing building to be unsafe in the event of a average snowfall of a few inches. GSA won't allow an agency to work in an unsafe building and will close the building for a minimum of 48 hours in the event of a 4 inch snowfall. The Veterans Benefit Administration cannot complete their mission if they don't have a fully functioning location for their employees, and VBA cannot be shut down for two plus days as this office services the whole country. Historically, the region receives approximately 1 inch of snow in November and 3 inches in December; however, there have been 6+ inch snowfalls in late November and 12+ inches or more in December documented over the last several years. With the need to avoid a mission shutdown, there is an urgent need to move the VA call center into a new location quickly. The FAR 6.302-2 Unusual and compelling urgency, allows for limiting the number of offerors within the following authorities 10 U.S.C. 2304(c)(2) or 41 U.S.C. 253(c)(2). The following conditions apply to this situation. When the agency's need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. Application. This authority applies in those situations where- (1) An unusual and compelling urgency precludes full and open competition; and (2) Delay in award of a contract would result in serious injury, financial or other, to the Government. Limitations. This statutory authority requires that agencies shall request offers from as many potential sources as is practicable under the circumstances. 5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS PRACTICAL. No advertising is required when using urgent and compelling under FAR 6.302-2. Market information was found using COSTAR, Loopnet and Officespace.com. In early October, 2012, GSA conducted a market survey and identified six potentially acceptable locations that might meet the agency's needs within the delineated area. With the large delineated area, it was still difficult to find many competing properties with 82,500 usf in one building. When the properties were viewed, it was apparent that 2 could not meet the time frames, as permitting would not allow the major renovations in the time needed. One building, near Weyerheauser in Federal Way, had little transit and no amenities, and could not fit the requirement into one building. Three potential locations could potentially meet the requirement. Two potential locations were in the south end of the delineated area and are asking approximately $20 full service rents, while the other location was in Seattle and is asking approximately $28.50 full service rent, which would put the property outside the competitive range. (full service rents do not include tenant improvement allowances, approximately $6 per ft per year) See paragraph 7 for further details. The two locations GSA will solicit for lease proposals are the following: Centerpoint 20819 72nd Ave South Kent, WA SeaTac Towers. North 17900 International Blvd SeaTac, WA 6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND REASONABLE. Recent market surveys conducted by GSA showed the rental rate within the delineated area ranges from $13.00 and $15.00 NNN, for a full service rate of $18.00 to $22.00.With tenant improvements of approximately $6 per foot for 5 years, the expected full service rate with limited tenant improvement will be $23.00 to $28.00. These rates are similar to existing rates within the market that are under GSA leases. FAA in Renton currently pays $24.50 rsf full service rate with no tenant improvements. DHS in Tukwila currently pays a full service rate including tenant improvements of $39.37, which equates to approximately $31.50 full service. 7. DESCRIPTION OF MARKET SURVEY CONDUCTED. On 9-10, GSA pulled a COSTAR report for the delineated area. The available office locations that might meet the needs were determined to be a total of 6 buildings within the delineated area. When reviewed, 5 buildings could potentially meet the requirement. It was determined after viewing the properties with our GSA subject matter experts, 2 of the buildings could not meet the timeline of a late November 2012 move in date due to the large buildout required. The other 3 locations could meet the requirement with carpet and paint, allowing for additional tenant improvements once the space is occupied. Address Asking Full Service Rental Rate 20819 72nd Ave South, Kent WA $20.00 + tenant improvements 17900 International Blvd, SeaTac, WA $20.00 + tenant improvements 701 5th Ave, Seattle, Wa $28.50 (out of competitive range) Figure 1: Market Survey Comparables 8. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN COMPETITION. Not applicable. 9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUSITION. Not applicable 10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION. In accordance with GSAM 570.402-2 and 570.402-5, future follow-on requirements to this requirement will include an advertisement of the requirement in FedBizopps in support of developing the market survey. Based on the urgent requirement to ensure VBA can meet their mission requirements, GSA did extensive market review, visited six locations and determined 2 locations met the agency minimum requirements. GSA proposes to solicit proposals from all locations that meet the minimum requirements. 11. Prepared by* __Same as Block 13_________________ Date______________________ [Name of Preparer], [Title of Broker Contractor (signature not required) or] Realty Project Manager 12. TECHNICAL REQUIRMENTS PERSONNEL CERTIFICATION*+ I certify that the supporting data used to form the basis of this justification is complete and accurate to the best of my knowledge and belief. __ Same as Block 13________________ Date______________________ [Name of Realty Specialist], Leasing Specialist 13. CONTRACTING OFFICER CERTIFICATION* By signature on this Justification for Other than Full and Open Competition, the Contracting Officer certifies that the award of a succeeding lease of [amount of space] rsf is in the Government's best interest and that this justification is accurate and complete to the best of my knowledge and belief. __/s/ Scott M Matsoon___________ Date_____________________ Scott M Matson, Contracting Officer 14. ACQUISITION MANAGEMENT DIVISION REVIEW __________________________________________ Date_____________________ Rose Bailey, Regional Procurement Officer OVER $11,500,000, BUT NOT EXCEEDING $57,000,000** APPROVAL: _____________________________________ Date_________________ Daniel Brown , Acting Regional Commissioner Head of the Contracting Activity (10P)